US bank JPMorgan continues to praise Bitcoin (BTC) and now sees it hitting $ 146,000 over the long term. JPMorgan believes that the queen of cryptocurrencies will become increasingly popular as an alternative to gold.
Strategists at US bank JPMorgan have set a long-term goal for Bitcoin (BTC) to be over $146,000. This value is obtained based on the assumption that cryptocurrency would become increasingly popular as an alternative to gold, reports Bloomberg.
Bitcoin’s market capitalization which stands today at around $630 billion is expected to increase by 4.2 times to match the total private sector investment in gold through exchange-traded funds. A performance that would bring Bitcoin’s total capitalization to $ 2,645 billion.
“The foreclosure of gold as an ‘alternative’ currency implies a sharp rise in the price of Bitcoin over the long term. However, a convergence of volatilities between Bitcoin and gold is not expected to happen quickly and is in our minds a multi-year process,” says JPMorgan.
For strategists, this means that their theoretical goal of $ 146,000 does not apply to 2021, but rather to the long term over the next few years. Either way, Bitcoin is quite capable of reaching such a value.
The bull-run he has known for a few weeks now supports these remarks. Since Bitcoin broke through its old all-time high of $20,000, nothing seems to stop its upward progression. Very recently, it has exceeded $35,000 and has even become one of the ten most capitalized assets in the world.